Women-Owned Small Business (WOSB)

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
Overview of the Federal Certifications and WOSB
program

Eligibility requirements

Resources and Q&A
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The Small Business Act (s.15(g)(1)&(2))
requires that the Federal Government set
aside contract dollars for small business
(23%)
◦ 8(a) including Small Disadvantaged
Business(5%)
◦ Women Owned Business (5%)
◦ Service Disabled Veteran Owned Business (3%)
◦ HUBZone – Historically Underutilized Business
Zone (3%)
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–
SBA Certification Programs
◦ 8(a) Certification
◦ HUBZone Certification
–
Self-Certification Programs
– Small Business
◦ Service Disabled Veteran Owned/Veteran
Owned
◦ Small disadvantaged business
◦ Women Owned
◦ Economically Disadvantaged Woman Owned
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Program overview
The Women-Owned Small Business (WOSB)
program authorizes contracting officers to
set aside certain federal contracts for
eligible:
• Women-owned small businesses
(WOSBs) or
• Economically disadvantaged womenowned small businesses (EDWOSBs)
The rule for this program became effective
in the Federal Acquisition Regulation (FAR)
on April 1, 2011
Impact of this program
• Levels the playing field for WOSBs
to compete for and win federal
contracts
• Provides procuring agencies a tool
to help meet their WOSB
contracting goal (i.e., the Federal
government must award 5% of its
prime contracting dollars to WOSBs)
• Ultimately, the program helps
create and retain more jobs for
WOSBs
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Contracting officers may set aside contracts for WOSBs and EDWOSBs if they meet the
following requirements:
Industries
WOSB Set Aside
EDWOSB Set Aside
• NAICS code assigned to
solicitation, IFB or quote is in an
industry in which WOSBs are
substantially underrepresented
• NAICS code assigned to solicitation,
IFB or quote is in an industry
in which WOSBs are
underrepresented
(157 6-digit NAICS designated)
Rule of two
• Contracting officer has reasonable • Contracting officer has reasonable
expectation that 2 or more
expectation that 2 or more
WOSBs will submit an offer
EDWOSBs will submit an offer
* Note: All EDWOSBs are WOSBs
Award
price
(217 6-digit NAICS designated)
* Note: Not all WOSBs are EDWOSBs
• The National Defense Authorization Act (NDAA) removed the dollar value
caps on WOSB / EDWOSB contract awards. The SBA’s regulation change
was effective May 7, 2013.
• Contract must be awarded at fair market price
A complete list of
applicable NAICS codes can be
found at www.sba.gov/wosb
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
Overview of the WOSB program

Eligibility requirements

Resources and Q&A
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
Meet small business size standard for primary NAICS code and contract

At least 51% unconditionally and directly owned by women who are U.S. citizens*

The woman must manage the day-to-day operations

The woman must make the long-term decisions for the business

A woman must the hold highest officer position in the company

The woman must work at the business full-time during normal working hours

No minimum amount of time the business has been operational
*We do not consider community property laws when looking at ownership.
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Same requirements as WOSBs (on previous page) PLUS:
 Personal net worth (assets minus liabilities) is less than $750,000 excluding:
• Ownership in business and primary personal residence
• Income reinvested or used to pay taxes of business
• Funds reinvested in IRA or other retirement account*
• Transferred assets within two years if to or on behalf of immediate family
member for select purposes**
 Adjusted gross income average over three years is $350,000 or less excluding:
• Income reinvested or used to pay taxes of business
 Fair market value of all assets is $6 million or less.
* Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty
** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in recognition of special event
Note: SBA will look at a spouse’s finances if the spouse has a role in the
WOSB/EDWOSB, has lent money to or provided financial support (including
credit or guarantee of loan) to the business. SBA may also look at spouse’s
finances if both spouses are in same or similar line of business and businesses
share names, websites, equipment and employees.
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A WOSB/EDWOSB may submit an offer as a joint venture with another
small business if the following requirements are met:
• Size: Combined annual receipts or employees of joint venture must
meet NAICS code assigned to contract*
• EDWOSB/WOSB must manage the joint venture
• EDWOSB/WOSB employee must be project manager responsible for
performance of the contract
• EDWOSB/WOSB must receive at least 51% of net profits
• Joint venture agreement must be in writing
• Joint venture must meet subcontracting limitations
Note: Joint venture agreement does not have to be approved by SBA
*Unless exception in 13 C.F.R. §121.103(h)(3) applies.
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There are a number of resources available to help answer questions about the
WOSB Program:
Visit our website: www.sba.gov/wosb
 You will find the latest information about the program on this site
Visit a local resource:
 Small Business Administration District Offices
 Find your local office at: http://www.sba.gov/az

Women’s Business Centers
 Find your local center at: http://www.sba.gov/content/womens-business-centers

Small Business Development Centers
 Find your local center at: http://www.azsbdc.net

Procurement Technical Assistance Centers
 Find your local center at: http://www.aptac-us.org/new/
Call the SBA Answer Desk: 1-800-U-ASK-SBA (1-800-827-5722)
Questions?
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